Agraflora Organics International (AGRA.C) subsidiary Sustainable Growth Strategic Capital, in conjunction with partner MicroC45, reported earlier this week about the generation of an inventory of 1,000 kilograms of CBD crude oil and distillate, which is ready to go on shelves this quarter, according to a press release.
Produced from 10,000 kilograms of hemp biomass, the company has acquired an inventory of nearly 10,000 kilograms of additional hemp biomass, which is ready for extraction and processing.
“It is our view that the CBD product market is still in the early days in Canada. We are well positioned to solve the short term supply issues of CBD ingredients such as CBD Isolate and CBD Distillate, which will help unlock growth in Canada’s CBD product market. We’re also thrilled to see the efficiency that our partners have been able to harvest, process, extract and purify our hemp biomass. This points to our ability to maintain competitive pricing over time,” said Brandon Boddy, Agraflora executive chairman and CEO.
Presently, manufacturing starts this month on the process to turn CBD oil into CBD isolate. If they complete the conversion, the company anticipates having an inventory of over 850 kilograms. They’re negotiating with potential buyers, and hope to determine the sales mix of CBD isolate, distillate and crude oil, and hope to close their first bulk transaction this summer.
Agra’s price remained flat on the news.